Disinflation can be defined as
A)a decrease in the overall price level.
B)a higher rate of inflation that is accompanied by economic growth.
C)a rate of inflation that is spiraling out of control.
D)an inflation hike that is not accompanied by a higher nominal interest rate, thereby creating negative real rates of return.
E)None of these.

Question

Quizplus · Accepted Answer

Disinflation refers to a reduction in the rate of inflation, meaning prices are still rising but at a slower pace, not a decrease in the overall price level or any of the other options.

Disinflation Can Be Defined as